THORNEY TECHNOLOGIES LTD — Capital/Financing Update 2006

Nov 26, 2006

AUSTRALIAN RENEWAB. FUELS LUNTER

AUSTRALIAN RENEWABLE FUELS LIMITED

ARN 66 006 7R2 188

SUITE 1B.LEVEL 5 SOUTH SHORE PIAZZA 85 SOUTH PERTH ESPLANADE SOUTH PERTH WA 6151

P.O. BOX 837 SOUTH PERTH WA 6951

$T\mathcal{E}f$ +61893633500 CAX 161893633511 E-MAIL Info@arfuels.com.au WEE www.arbeis.com.au

27 November 2006

ASX Release

Company Announcements Office Australian Stock Exchange Limited 10^th Floor, 20 Bond Street SYDNEY NSW 2000

Dear Sir/Madam,

Australian Renewable Fuels Limited achieves biodiesel production and sales milestones and anticipates qualification for remainder of Federal Government Grant

Key Points

• November biodiesel sales expected to reach 1.5m litres; and $\bullet$
• Delivery into sales contracts in December expected to rise to 2m litres.

The Company expects to achieve production levels in January 2007 commensurate with the achievement of the remainder of the Federal Government Biofuels Capital Grant.

Australian Renewable Fuels Limited ("ARFuels") (ASX Code: ARW) wishes to advise that the company is now delivering substantial quantities of biodiesel from its Largs Bay plant into the large sales contract announced on 9 October 2006. Further, we expect to achieve the following production and sales milestones during the next two months:

• By the end of November 2006, delivery of 1.5m litres of biodiesel from the Largs Bay plant into sales contracts and the establishment of substantial fuel inventories awaiting delivery into existing sales contracts.
• In December 2006, delivery of between 1.5m and 2m litres of biodiesel into our various Supply Contracts from the Largs Bay plant.
• From early January 2007, we expect production to reach levels which will entitle ARFuels to claim the \$5.4 million balance of the Federal Government's Biofuels Capital Grant which is due at these production levels.
• During December 2006 we expect the Picton plant to begin the production of biodiesel from an 80/20 tallow/canola blend. Marketing initiatives for the Picton production is currently a key focus of the Group's attention.

ARFuel's recently announced internal restructuring of its Australian operations has already resulted in increased emphasis on production and delivery into offtake contracts. It is also expected to result in the crystallisation of additional contracts for offtake and the achievement of previously forecasted production levels. Further gains in both areas are anticipated from the restructuring.

Australian Renewable Fuels Limited, which was floated in 2005, now operates the Largs Bay and Picton biodiesel plants in Australia, each with a design capacity of 45 million litres of biodiesel a year. The company is also planning its entry into the biofuels business in the North American Free Trade Agreement (NAFTA) region.

For further information, please contact:

Australian Renewable Fuels Limited Darryl Butcher Managing Director T: 08 9363 3500 E: info@arfuels.com.au

ENDS